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How will cybersecurity change business litigation?

On Behalf of McNabb, Bragorgos, Burgess & Sorin, PLLC | May 12, 2022 | Business Litigation

Cybersecurity is a field of growing importance for businesses in Tennessee and other states. Understanding how it impacts litigation is relevant for business owners, managers, and other parties who might need to make changes to their business infrastructure to stay current with cybersecurity defense protocol.

Cybersecurity and business
While many parts of business life have been transformed by the internet, the security risks are substantial, and many people do not appreciate them, especially when it comes to legal exposure. For example, many businesses have become accustomed to using online signing services like DocuSign for contracts. However, these resources are often less secure than their offline counterparts, and they are vulnerable to phishing attacks and other problems. That can cause all kinds of headaches if there is a legal dispute down the line or if a cyberattack damages the business in some way.

Cybersecurity and the law
Legal procedures themselves also need cybersecurity. Legal documents, filings, and other key data need to be secure and ideally with minimal access to the internet. Leaving trade secrets, contracts, and other similar documents on public platforms or without enough protection can result in business litigation.

This even applies to hiring. More and more companies, especially those in the tech space, are using the law to prevent ex-employees from telling new employers anything about their jobs or work. Attempting to violate a nondisclosure agreement could lead to legal action by the previous employer.

Businesses need to study best practices and ensure that they are up to date on the latest cyber risks in order to ensure that they are not creating vulnerabilities in their system. The repairs from a breach or a violation of liability can be costly.